OpenAI explores legal action against Apple

OpenAI has hired an outside law firm to explore possible legal action against Apple over the companies’ ChatGPT partnership on the iPhone, according to a Bloomberg report published May 14 and follow-on reports by Reuters and other outlets. The dispute centers on OpenAI’s view that the integration did not deliver the subscriber growth, revenue and visibility it expected from the arrangement, those reports said. Apple and OpenAI announced the partnership on June 10, 2024, as part of Apple’s Apple Intelligence rollout, with ChatGPT positioned as an optional extension inside Siri and Writing Tools. As of May 16, no complaint appears to have been filed publicly, and neither company has announced litigation. ### What exactly did Apple and OpenAI agree to put on the iPhone? Apple said on June 10, 2024, that ChatGPT would be integrated into iOS, iPadOS and macOS later that year. In Apple’s presentation and subsequent support documents, the company described ChatGPT as an extension that Siri could call on for some requests and that Writing Tools could use to generate or revise text. (msn.com) OpenAI said in its own June 10, 2024 announcement that the deal would bring ChatGPT into Apple experiences across iPhone, iPad and Mac. Apple’s support page says users must choose to enable the ChatGPT extension, and requests can be sent to ChatGPT either without an account or through a linked ChatGPT account. ### Why is OpenAI reportedly unhappy with the arrangement? (apple.com) Bloomberg, as summarized by Reuters and TechCrunch, reported on May 14 that OpenAI believed the partnership failed to generate the subscriber growth and revenue it expected. Those reports said the company was frustrated by the way ChatGPT appeared inside Apple’s software and by the limited commercial payoff from the integration. (openai.com) Technobezz reported on May 15 that OpenAI had hired a law firm this week to examine its options against Apple. That report did not identify a filing date or describe a formal complaint, and Reuters similarly reported only that OpenAI was preparing possible legal action. ### How visible is ChatGPT inside Apple’s software today? (msn.com) Apple’s current support materials describe ChatGPT as one feature within Apple Intelligence rather than a stand-alone default assistant. The iPhone guide says Siri can “tap into ChatGPT” for more in-depth answers on certain requests, while Writing Tools can use it to create text or images. (technobezz.com) Apple’s legal and privacy disclosures also show the feature is gated by user choice. Apple says users can disable the ChatGPT extension at any time, and OpenAI says people can connect either free or paid ChatGPT accounts through Apple’s integrations. ### Has either company said anything publicly about a lawsuit? Reuters reported on May 14 that the partnership had become strained and that OpenAI was preparing possible legal action, citing Bloomberg News. (support.apple.com) The Reuters item did not include a public statement from Apple or OpenAI announcing litigation, and no court filing details were provided in the reports surfaced so far. (apple.com) 9to5Mac, citing Bloomberg, reported the same day that OpenAI was considering legal action over the Siri partnership. That report also described the matter as preparatory rather than filed. ### What parts of the relationship are still in place? Apple’s support pages currently continue to describe ChatGPT as available through Apple Intelligence on supported devices. (msn.com) OpenAI’s help pages also continue to explain how Apple users can connect ChatGPT accounts and how data is handled when people use ChatGPT through Apple’s integrations. (9to5mac.com) The companies’ original June 2024 announcements have also not been withdrawn from their websites. Apple still describes “seamless support for ChatGPT” in Apple Intelligence materials, and OpenAI still hosts its partnership announcement with Apple. ### What should readers watch next? June is the next concrete marker because Apple used WWDC on June 10, 2024, to unveil the OpenAI partnership and typically uses the conference to outline major software changes. (support.apple.com) If OpenAI moves from exploring options to filing a case, the first public sign would likely be a court complaint or a statement from Apple, OpenAI or their lawyers. (apple.com 1) (apple.com 2)